Identify -
1. Is this a one tailed or two tailed test?
2. Null & alternative hypothesis
3. Test Statistic
4. P-value
5. Conclusion about null hypothesis
6. Final conclusion that addresses original claim.
7. Is this a one or two sample test?
A nationwide study of American homeowners revealed that 64% have one or more lawn mowers. A lawn equipment manufacturer, located in Omaha, feels the estimate is too low for households in Omaha. Can the value 0.64 be rejected if a survey of 490 homes in Omaha yields 360 with one or more lawn mowers? Use a 0.05 significance level.
Given:
sample proportion, p = 360/490 = 0.7347
= 0.05
1.)
This is One-tailed test
2.)
Ho: P = Po (0.64)
Ha: P > Po (0.64)
3.) z-statistic can be used
4.)
P-value = 0.00002882
5.)
Since P-value < 0.05, there is significant evidence to reject Null Hypotheses
6.)
The original claim that p = 0.64 is rejected since p-value < 0.05
7.)
Its a one sample test since there is only is one sample whose proportion is tested
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